CS Mbadi Explains Tax Cuts for Salaried Kenyans Earning Below Ksh50,000

Kumbe CS Mbadi is NOT abandoning the PAYE tax cuts promise — lakini the numbers are making him sweat, aki! The government wants to give salaried Kenyans earning below Ksh30,000 complete tax relief, but there's a catch: it could cost the treasury a whopping Ksh35 billion annually. The Plot Thickens: Where Are Our Tax Cuts? Right, so remember when the government promised that Kenyans earning below Ksh50,000 would get some serious PAYE relief? Yeah,

05/11/26  •  3 Views

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Kumbe CS Mbadi is NOT abandoning the PAYE tax cuts promise — lakini the numbers are making him sweat, aki! The government wants to give salaried Kenyans earning below Ksh30,000 complete tax relief, but there's a catch: it could cost the treasury a whopping Ksh35 billion annually.

The Plot Thickens: Where Are Our Tax Cuts?

Right, so remember when the government promised that Kenyans earning below Ksh50,000 would get some serious PAYE relief? Yeah, well, when the Finance Bill 2026 dropped, everyone was like "uko wapi?"— the tax cuts were nowhere to be found. Cue the outrage. But hold up, Treasury CS John Mbadi showed up on Monday with some explaining to do, insisting the proposal is still very much alive and kicking.

The plan? Raise the tax-free income threshold from the current Ksh24,000 to Ksh30,000 monthly. That's real money in the pockets of millions of working Kenyans, sawa? But here's the thing — the government is running simulations to understand the economic impact, and early projections show they could lose about Ksh35 billion in annual revenue. Sio joke, bana. That's serious cash that could have gone to roads, schools, hospitals.

Mbadi made it clear: "We have not dropped the issue of PAYE." The decision will be finalized before June 30, before the National Assembly even passes the bill. So technically, there's still hope. But you can feel the tension between what the government promised and what the numbers allow them to deliver.

The Real Talk: Is the Money Even There?

Here's where it gets spicy. The Treasury is allegedly conducting a deep dive into Kenya's broader economic situation. They're looking at KRA reforms, revenue streams, everything. But let's be real — when you're hemorrhaging Ksh35 billion annually, that's not pocket change you can just sneeze at. The government is literally asking itself: "Can we afford to be generous right now?"

What this really means is that Mbadi and his team are in a tight spot. Give workers the tax relief they desperately need and deserve? Sure. But then what happens to those budget lines for development projects? It's the classic Kenyan government dilemma — promises versus reality, sio ndio?

💥 Why This Matters to Your Wallet

  • Ksh30,000 earners could get ZERO PAYE deductions — that's real money staying in your account every month
  • The government is admitting the revenue loss is a genuine concern, meaning they're actually thinking this through
  • Decision comes before June 30 — we're close to knowing if this actually happens or becomes another broken promise

The Jukwaa Take: Mbadi's got one foot in and one foot out — the promise is real, but the math is brutal, and that's the honest truth Kenyans deserve to hear.

📰 Source: Kenyans.co.ke

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